Keir Starmer recently hinted at potential tax increases for individuals who earn their income from shares and property, stating that they do not fall under his definition of “working people.” This statement comes as the government is expected to announce rises in inheritance tax and capital gains tax (CGT) in the upcoming budget.
The debate over the definition of working people has been sparked by the government’s promise not to increase taxes on working individuals. Starmer clarified that he considers working people to be those who earn their living through work and may have some savings, but do not have the financial capacity to easily write a big check in times of difficulty.
When asked about potential tax increases for individuals who earn income from assets like shares and property, Starmer mentioned that the government is considering raising CGT on the sale of shares and other assets by several percentage points. However, CGT on property sales is expected to remain unchanged due to concerns about its impact on sales.
Rachel Reeves, the chancellor, has also expressed the need to make tough decisions in the budget. She is looking into tightening the rules for inheritance and gift tax, with only a small percentage of UK estates currently attracting inheritance tax.
The discussion around tax increases for individuals with asset income continues to evolve as the government faces pressure to uphold its manifesto promise while making necessary financial decisions. It remains to be seen how these potential tax changes will impact different segments of the population and the overall economy. Stay tuned for more updates on this developing story.
